Reply With QuoteI would imagine PP would be in that catagory
I know that some brands would prefer that AD's do not offer discounts on their watches, and that there are some who have such a grip on AD's that they are considered "protected Brands". For these watches there is only a small amount of discount that a AD could offer to returning customers, in the last week I have had Rolex Sports models and Panerai mentioned as a protected brand, so what others do we know of that has this level of brand protect?
I would imagine PP would be in that catagory
Lots of brands are trying to put themselves in this bracket by using boutiques.
How legal is this?
Is what???Originally Posted by Dougal
Not allowing re-sellers to offer discount - are you serious!
There's nothing illegal in recommending a retail price. There's also nothing illegal in closing an account of a dealer who you thought didn't represent the interests of the brand.
Price fixing is illegal of course, but that's a different thing entirely.
Perfectly.
Their goods, their prices, their 'franchise' conditions, as a re-seller if you don't comply, they won't supply.
Nothing illegal about that
Price fixing or cartels are illegal, but does not apply in this case as a sole provider, you can't have a cartel of one.
Think petrol prices, as that's the simplest example.
For watches you have to have say all 300m dive models all cost the same within a couple of quid, that would be price fixing. Basically giving you no choice
Yes this way we get the chance to vote with our feet; except that we don't
Lange & Söhne
JLC
Cartier
Montblanc
In fact, all premium brands in all sectors. It's certainly not a new concept.
Although price fixing is illegal I suspect there is so much choice of brands/models it wouldn't be upheld as a complaint and dealers quite happy to stick to rrp as it holds their margins up.
Rrp isn't price fixing though is it
Try a country where demand has really gone down and you'll be pleasantly surprised. Not much of a silver lining, I know, but still...
The AD contract may even stipulate maximum discounts (or at least I am lead to believe they used to), and indeed how any watch is sold.
I understand that the old Rolex contracts had quite a lot of restrictive/prescriptive clauses within them, as I am sure did many others.
Last edited by Omegamanic; 15th August 2013 at 22:46.
It's just a matter of time...
Of course not as the first word is recommended... I would expect Rolex wouldn't like any suggestion by an AD they can't set the selling price - although as has been pointed out previously with so many different brands available however counterintuitive it may seem I wouldn't expect competition law to feel that the consumer is suffering.
No manufacturer would want their goods discounted. There is little more damaging to a brand than discounting.
Therefore all are protected to an extent. The extent is probably governed by the power of the manufacturer. Some have massive ability to control their ADs, others have less.
Lose you Zenith or Corum dealership (much as they are both great watches) and it is unlikely to be the ruin of your business. Losing PP or Rolex would be a different story. Therefore such makers have a much bigger stick to wave.
+1
The jewellery brands like:
Cartier
Montblanc
Chopard
Pure watch brands probably only Rolex, Panerai, and PP, though apparently Vacheron gives hardly any margin to work with anyway
Other 'retail' brands like Dunhill, Montblanc, Louis Vuitton
Having said that I have been offered discounts on Montblanc and Chopard in Asia from boutiques etc
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